+ All Categories
Home > Documents > OTHER TAXING MATTERS

OTHER TAXING MATTERS

Date post: 23-Mar-2016
Category:
Upload: meda
View: 47 times
Download: 1 times
Share this document with a friend
Description:
OTHER TAXING MATTERS. With Jack Cohen, CPA IncSmart.biz Inc. After Selecting an Entity What am I about to Receive?. Income Tax Reporting Forms Payroll Tax Reporting Forms State Tax Reporting Forms Sales and Use Tax Forms Personal Property Tax Forms Others. Payroll Reporting. 940 FUTA - PowerPoint PPT Presentation
Popular Tags:
25
OTHER TAXING MATTERS With Jack Cohen, CPA IncSmart.biz Inc
Transcript
Page 1: OTHER  TAXING MATTERS

OTHER TAXING MATTERS

With

Jack Cohen, CPAIncSmart.biz Inc

Page 2: OTHER  TAXING MATTERS

After Selecting an EntityWhat am I about to Receive? Income Tax Reporting Forms Payroll Tax Reporting Forms State Tax Reporting Forms Sales and Use Tax Forms Personal Property Tax Forms Others

Page 3: OTHER  TAXING MATTERS

Payroll Reporting 940 FUTA 941 Federal Withholding and

Social Security State Withholding State Unemployment State Disability Others

Page 4: OTHER  TAXING MATTERS

Tax Tip Use Payroll company

Page 5: OTHER  TAXING MATTERS

State and Local Taxes Sales tax Use tax Personal property tax Business license or permit

Page 6: OTHER  TAXING MATTERS

Where People Get In TroubleTrying to Avoid Sales Tax

Who is responsible for collecting the tax? What if I purchase merchandise out of

state? What is a resellers certificate?

Page 7: OTHER  TAXING MATTERS

NexusWhat is it and how is it determined?

United States Supreme Court has held that states can only impose tax or collection responsibility when:There is a substantial physical presence between the state and:the sellerthe transactionthe activity

The state may require out-of-state vendors to provideInformation.

Page 8: OTHER  TAXING MATTERS

NexusContinued

Substantial physical presence includes:

• Owning or leasing real estate or tangible personal property

• Maintaining a business location or inventory• Having resident or nonresident employees

work within the state• Incorporating or qualifying to do business• Using the company’s own trucks and

personnel to make deliveries into the state on a regular basis

Page 9: OTHER  TAXING MATTERS

NexusContinued

Employee VisitsPhillip Crosby Associates, Inc. (Alabama-1996) Management Consulting Business

Telemarketing sales; in-person visits 26/yearDid 69 projects and training over three yearsNexus upheld-considered regular and repeated

B.L. Key, Inc. (Utah-1997)MFG sent 3 supervisors to Utah on 8 trips lasting a week to a monthSupervisors hired 4 employees each tripArgued presence was not regular but sporadicNexus upheld-ruled regular means repeated

Page 10: OTHER  TAXING MATTERS

NexusContinued

Representative’s Nexus Out of State Mail orders

Independent Sales RepSome 800 phone numbersTelemarketers ruled as independent sales reps

Printer’s NexusApplies to out-of-state companies establishing Nexus

By storing paper at the printer’s locationBy visitations to the instate printer

Instate deliveries - How many? Drop Shipments

Page 11: OTHER  TAXING MATTERS

New Business Expenses Start-up expenses

Organizational expenses

Web site expenses

Page 12: OTHER  TAXING MATTERS

Start Up Expenses Money advanced to corporation = loan Deductible upon start of business Start – When apartment is available When open for business When searching for business Capital Expense Until Start

Page 13: OTHER  TAXING MATTERS

Business Travel Client calls

Market research

Plan your vacation around business

Page 14: OTHER  TAXING MATTERS

Tax Tip Maintain Good Records Receipts with business reason. Diary – Kept Contemporaneously. Primary reason for trip. Ordinary & Necessary Expense

Page 15: OTHER  TAXING MATTERS

Annual Board Meeting

Fully deductible

Find a creative location

Successful people travel

Page 16: OTHER  TAXING MATTERS

The Big Deduction Sec. 179

This year:$125,000 up to purchase of

$500,000

Page 17: OTHER  TAXING MATTERS

Family Members as Tax Deductions

Children: lower tax deductions Spouse on payroll Employee benefits Retirement planning

Page 18: OTHER  TAXING MATTERS

Employee Education Expenses

Seminars Conferences College tuition

Page 19: OTHER  TAXING MATTERS

Employee Benefits

Medical Child Care Life

Insurance

Dental Long Term

Care Chiropractic

Page 20: OTHER  TAXING MATTERS

Business Retirement Plans

Pension, Sep 401K

Profit Sharing

Defined Benefit Plans

Page 21: OTHER  TAXING MATTERS

Retirement $ The

Ultimate Safe

Page 22: OTHER  TAXING MATTERS

Final Thoughts It’s Your $

Plan, Plan, Plan …

Take Action

Page 23: OTHER  TAXING MATTERS

Alternative Minimum Tax Background Tax Preference Items Sch. ‘A’ Taxes Accelerated Depreciation Capital Gains To Avoid – Keep deductions on page 1 of

return.

Page 24: OTHER  TAXING MATTERS

Pension Contribution Changes Defined Benefit Plan Max. Compensation Used = $225,000 Smaller of 100% of compensation or $45,000 401K $15,500 & $5,000 catch up SEP – Lesser of 25% Income or $45,000 Traditional IRA – Lesser of Compensation or $5,000

Page 25: OTHER  TAXING MATTERS

Thank YouFor more information, visit

IncSmart.biz Inc


Recommended